this is the business briefing. i'm sally bundock. managing expectations — netflix posts healthy subscriber growth that's better than expected, so why are its shares falling? and the big mystery — apple and qualcomm settle their long—running dispute at the same time as intel pulls out of the mobile phone modern business. our technology reporter dave lee will explain. and the markets in asia were given a boost by the latest economic numbers out of china, with gdp in the first quarter coming in at 6.4%.

hollywood's streaming wars are about to step up a gear, so this is not the time for netflix to say its expecting fewer subscribers in the future. the latest numbers from the world's biggest streaming company show it's continuing to hit targets, but investors sold off netflix shares anyway. so let's look at the detail. one of the most keenly watched numbers is how many new subscribers joined netflix at the beginning of this year. in the first three months it says it added 9.6 million paying subscribers, that's16% growth. all together they helped the company bring in just over $4.5 billion, but profit was just $3“; million because the company spends so much on making the shows we all watch. it's expected to spend $15 billion on original content this year.

great news for actors, writers and directors, but investors want to see that paying off in terms of revenues. and expectations are high — netflix shares are worth around 75% more than they were at the start of last year, making it one of the best performing of the tech giants. but there's growing competition. the likes of apple, disney, amazon, facebook, warner media are among those trying to take it on with their own content, as are local players in countries such as india. guy bisson, research director at ampere analysis joins me now. good morning. good morning. you've looked at the numbers, what do you think? there is a key thing, their forecast for the next quarter, they

say 2% greater customer value in the next quarter. that figure doesn't ta ke next quarter. that figure doesn't take many quarters of 2% to bring up the rp by a dollar or two, but will start to wipe out their cash flow deficit. rp is ravaged revenue per user “— deficit. rp is ravaged revenue per user —— average. deficit. rp is ravaged revenue per user -- average. that's the average value they give them each month. what about the issue of it raising how much it charges per month, there was concern that that would put people off. we haven't really seen that follow—through, have we? people off. we haven't really seen that follow-through, have we? they claim they expect a short—term hit, a bit of turning, as it is cold, but it won't be a prolonged hit. the $2 price rise is key, they need to raise their customer value by $1 67 to wipe out the cash flow deficit. that 2% they are claiming for the next quarter is the start of that turnaround. so is customer growth tails off as it is, that will start

to reverse their fortunes financially. what is critical for netflix to stay ahead. we've mentioned so many big names coming into this market and they have big pots of castor spend on original content, the likes of apple, amazon et cetera. there are headwinds and apple is key, but the hollywood studios themselves are going to go to the direct consumer, disney, time warner, and nbc universal. that is a double whammy for netflix because it means competition, of course, but it also means those studios will be pulling back on contents off netflix, so they have a challenge to acquire enough content. how do you think it will fare in the future, will it remain over one —— number one or will it be overtaken? it has a strong position. it is a gateway drug for people with streaming services. they often get netflix and

then later additional services on top of that stop it's only very strong position, i don't see it being usurped overnight. more detail on our website. let's discuss the tech giants apple and qualcomm. tech giants apple and qualcomm have agreed to settle all ongoing lawsuits, putting an end to a long—running battle with billions of dollars at stake. apple had accused qualcomm of abusing its position as one of the few suppliers of modem components to demand unreasonable royalties from the iphone, while qualcomm accused apple of using its position as a market leader to avoid paying fees. this was a big surprise, but then, just a few hours ago, chip maker intel added to the mystery with an announcement of its own. dave lee reports from san francisco. moments after the sentiment was main public, intel said it was no longer making 5g modems for smart phones ——

made public. that leaves qualcomm is the only realistic supplier for apple, at least until it can make its own 5g modems, and achievement a nalyst says its own 5g modems, and achievement analyst says still years away. what we don't know yet is who blinked first. did apple no intel was leaving and was forced to sit with qualcomm and fall behind in the 5g era? ordid qualcomm and fall behind in the 5g era? or did the settlement make it clear to intel that it could no longer compete, forcing it to give up longer compete, forcing it to give up and focus on other areas. we might hear more when the company's reveal the quarterly earnings at the end of the month. now, let's brief you on some other business stories. asian sales at the cosmetics giant l'oreal overtook western europe for the first time last quarter. it seems cosmetics are immune to the general slowdown in the chinese economy. ten years ago, l'oreal‘s sales in asia was only a third of those in its home market. a board of pilot experts have decided pilots won't need additional simulator training once boeing releases software updates

to its grounded 737 max aircraft. the pilot panel was appointed by the federal aviation authority. the decision is seen as an important step in making the 737 max take to the airagain. terry gou, chairman of apple supplier foxconn, says he will follow the order of a sea goddess who has told him to run in taiwan's 2020 presidential election. he has not yet formally declared his intention to contest. gou was speaking a temple devoted to the sea goddess mazu, a popularfigure in taiwan that governs everything from safety to fortune. let's talk about china, the world's second biggest economy. china's economy grew 6.4% in the first quarter from a year earlier.

that was higher than expected and steady from the previous quarter, helped by sharply higher factory production. everyone was breathing a sigh of relief, we are always a bit concerned about a slowdown in china and that impact on the global economy. let's get more on this story with stephen mcdonel whojoins me from beijing. it's nice to see you, stephen. tell me about these numbers. i already had a viewer to eat saying how can we trust them, anyway? that is a good question. some analysts say that you can't really trust the a ccu ra cy that you can't really trust the a ccu ra cy of that you can't really trust the accuracy of china's gdp figures, but for the purpose of this discussion, let's say that interim terms at least that is a parting there. and if you look at that pattern, it seems to be showing that the stimulus measures from the chinese government —— pattern there, have boosted economic production here. 6.4% year—on—yearfor boosted economic production here. 6.4% year—on—year for the first quarter this year is the same as last year, but it's not the same

6.3% that many analysts had predicted, so it means the economy here seems to be growing quicker than analyst had predicted. that is good news. there were other details as well such as retail sales numbers, industrial production figures, what is the overall picture we're about china ? figures, what is the overall picture we're about china? the way this has worked is that the chinese government has loosened up lending through the banks and also infrastructure spending amongst other measures including some tax relief. that means retail spending has gone up, especially with items to do with housing, which means the housing market's also holding up, steel production has gone up after the winter restrictions on pollution here. and, it doesn't mean that there weren't problems, there were still big problems with debt, of course, which happens every time you have more stimulus year by the

banks, however what they are trying to do is to gradually bring down the expectation of people in terms of growth. the chinese government wants to have less but that a growth, it doesn't want this to happen to quickly, so slowing down as ok as long as it gradually happens —— too quickly. they feel they can't afford a massive social dislocation or mass unemployment, so they have to boost the economy a bit to gradually bring things down as we move into a more high—tech, a more domestic consumption driven model. thank you very much indeed. let's weakly show you the financial markets once again. a mixed picture in asia, but overall a positive reaction to the news coming out of china, which of course always does impact markets

worldwide in fact. that is your business briefing. the news briefing is injust a moment. let's look at this story about universities being accused of using gagging orders to stop bullying, this rumination and sexual misconduct allegations coming into the public arena. —— discrimination. dozens of academics have told the bbc they were "harassed" out of theirjobs and made to sign non—disclosure agreements after making complaints. figures show uk universities have spent at least £87m on pay—offs since 2017. rianna croxford reports. once designed to protect trade secrets, now creating a culture of silence. nondisclosure agreements are keeping allegations of misconduct in the dark. feeling

trapped, but desperate to be heard. after i complained i was advised to sign an nda and leave. i ended up hundreds of miles away at a new university, only for the bully to follow me and continue to harass me. iam follow me and continue to harass me. i am depressed and it's crippling my career. bbc has spoken to dozens of people who say they felt pressurised into signing and nda. many faced racist and sexist bullying, others describe being groped and harassed. one woman was harassed for being late on the day of her miscarriage. this person has decided to break their nda. she signed one relating to her disabilities, teaching and research role, following her cancer diagnosis. she felt that it hadn't been fairly addressed.” diagnosis. she felt that it hadn't been fairly addressed. i want other people to break their nda, because we can't see each other in major

community. the university of liverpool says it refutes the allegations in the strongest possible terms. miss cass albion was not subject to discrimination or bullying and did not fail to make reasonable adjustments —— kassabian. the government is trying to tighten the rules on what nda is used for and stopping them from being misused. this is the briefing on bbc news. let's remind you of the headlines. resident mccrone promises notre—dame cathedral will be rebuilt within five years —— president mccrone. donors have pledged almost $1 billion. in indonesia, voting is going to a close and the biggest elections are held in the country. the president, parliament and local officials were all on the ballot papers. nearly 300 climate change activists have been arrested after

blocking roads in central london for a second day. let's look at those stories and a little more detail. this let's begin in france, with the front page of le parisien and this incredible photo of the inside of notre—dame showing the iconic building, burned and damaged — but still standing. the inferno is the story dominating all the newspapers today, including the metro. a free paper in london. ‘they saved notre—dame' is the headline. the firefighters and the chaplain who risked their lives in the fire. to the guardian now, and another city in chaos, climate change protesters who have caused "serious disru ption" and vow to continue. next to the daily mail, a record number of women in the uk over 50 are still working — but is that their choice or the rise in the state pension age from 60 to 65 forcing their hand? to the san francisco chronicle now,

which takes a look inside the third amazon go store, which opened yesterday, with no cash and no cashiers. is that a good thing or a bad thing? we will talk about that. and finally the daily telegraph business front. apple and oualcomm settle a £20 billion lawsuit. this story are touched on in business briefing. with me is shona ghosh, senior tech reporterfrom business insider. let us get stuck in. all the french papers have got these images on the front pages. pretty haunting, isn't it, seeing the ravaged building, almost like a skeleton and seeing all these windows, ancient i3th century windows having collapsed out. it is amazing to see that the

stonework seems to have survived. perhaps we can